How a credit union makes money if they don’t invest out your money like banks do.
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I work for a credit union. As another has said they are non profit so they don’t “make money” in the sense of profit. However there are costs such as paying people, buying supplies, and paying for electricity, etc.
We make money in that sense by charging interest on loans and working with other partners like insurance partners, investment patterns, etc. there are tons of other ways too such as interchange from debit/credit cards too.
The bread and butter though is loan interest, so when you pay interest on your car, the amount of money that would be profit from that finds its way back into the credit union somehow such as building a new branch or replacing materials instead of being profit at the end of the day.
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